Singapore-based institutional real estate investment management firm SC Capital Partners Group (SCCP) has announced the acquisition of a 206-room hospitality asset in Central Tokyo on behalf of its Japan Hospitality Fund.
Located in Shinjuku, one of Tokyo's premier commercial, retail and entertainment districts, the scale of the property differentiates it from the predominantly smaller, limited-service hotels in the surrounding market, says SCCP in a July 8 announcement.
This provides a “rare opportunity to create a higher-quality hospitality offering in one of Tokyo's most sought-after locations”.
SCCP plans to undertake a “comprehensive” asset enhancement programme to “better align” the property with Shinjuku’s growing inbound traveller base, as well as to elevate the guest experience and strengthen its long-term competitive positioning.
Suchad Chiaranussati, chairman and founder of SCCP, says the firm remains confident in the long-term fundamentals of Japan’s hospitality sector. “Tokyo has firmly established itself as one of the world’s most compelling hospitality markets, supported by resilient domestic demand, strong inbound tourism and significant barriers to new supply.”
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Opportunities of this nature require deep local market knowledge, hospitality expertise and the ability to execute complex repositioning strategies, he adds. “Through our long-standing presence in Japan and integrated platform, we believe we are uniquely positioned to unlock value from assets of this scale by transforming them into compelling hospitality offerings that better align with the evolving needs of today's travellers.”
Since entering Japan’s hospitality sector in 2010, SCCP has invested over US$1.3 billion through its private funds strategies, encompassing 60 hotels and approximately 13,000 rooms.
Founded in 2004, SCCP is also the majority owner of Japan Hotel REIT Advisors (JHRA), the asset manager of Japan Hotel REIT Investment Corporation (JHR). JHR is one of the largest hospitality REITs in Japan, with a portfolio of 52 hotels comprising 14,842 rooms, and a total appraisal value exceeding US$5.3 billion.
Photo: SCCP
